WELCOME
Advertising/Editorial: Robert Johnson, Benefitz Telephone 09 477 4702, Mobile 027 4970 712, Email: robert@benefitz.co.nz
Gary Young
Design/Production: Craig Burkett, Benefitz Imaging: CTP by Benefitz Produced for IBANZ by: Benefitz, Cnr Constellation Drive & Parkway Drive, Mairangi Bay, North Shore City. PO Box 33-1630 Takapuna. Telephone 09 477 4700, Fax 09 477 4799 Advertising Deadlines: Bookings 10th of the month prior to publication, material 15th of the month prior to publication.
CEO, IBANZ
Welcome to
The more things change‌
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CoverNote is the official publication of IBANZ and is distributed FREE on a quarterly basis (March, June, September, December) to members throughout New Zealand and associated companies. Additional copies are available at a cost of $7.50 per copy, or 12 month (4 issue) subscriptions at $30.00, inclusive of postage and packaging. The articles or opinions featured within this magazine are not necessarily the opinions of the publishers or IBANZ, and they do not accept responsibility for the content of articles featured within the publication. No part of this publication may be reproduced without the written permission of the publisher. The publishers do not accept responsibility for loss or damage to unsolicited photographs or manuscripts. IBANZ enquiries should be made to: Gary Young, Chief Executive, IBANZ. Email: gary@ibanz.co.nz IBANZ National Office located at: Level 5, 280 Queen Street, Auckland (P.O. Box 7053, Wellesley Street) Telephone 09-306-1732. Website: www.ibanz.co.nz
he real challenge for business today is keeping up with the changing environment in which they operate. Despite being a sector generally acknowledged as being slow to change, insurance must now face up to disruption and a changing regulatory environment. There are valid reasons why insurance should take a careful, considered approach to change. Being based on legal contracts, priced on years of past experience, sudden change does not sit well for such a business model. Society needs insurance to operate and it needs certainty that the protection will be there through the good times and the bad times. Radical change can bring unintended consequences that expose clients to unacceptable risk. Customer outcomes are a key driver for competition these days and governments are keen to regulate where the customer (voter) is concerned. In a country such as New Zealand, natural disasters are an ever present risk; the performance of insurance is therefore regularly in the spotlight. Combine this with the fact the insurance is seen as part of financial services and there is inevitably going to be a focus on the outcomes for clients. The Code Working Group was recently created as part of the review of financial adviser legislation and they have already indicated customer outcomes will be a primary focus when developing the new advisers' code of conduct. IBANZ members have of course always recognised the need for a code, and IBANZ has regularly updated their code to ensure it meets current best practice. The challenge now is moving to the next level and in particular what benchmark will be seen as appropriate for those advising on risk management and insurance programmes. How will the necessary competence be measured? What minimum standard is required to ensure positive customer outcomes? How will the existing experience of brokers be acknowledged without requiring a compulsory qualification? These are challenges IBANZ and the Code Working Group will need to tackle. To achieve success, a team effort will be required. IBANZ is up for the challenge and initial indications are that the Code Working Group is open to a joint approach. We look forward to making it happen.
Gary Young, CEO, IBANZ